What is a policy term?

A policy term is the length of time your insurance policy remains active and provides coverage.

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Simple Meaning

Policy term = the duration of your insurance plan.

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Example

If your life insurance has a 20-year policy term, it means:

• The policy will provide coverage for 20 years
• You must pay premiums during this period
• Claims made within these 20 years will be paid according to the policy

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Where Policy Term Applies

• Life insurance → 10, 15, 20, 30 years, or even lifetime
• Health insurance → usually 1 year or multi-year (2–3 years)
• Car/Bike insurance → 1 year or long-term (3–5 years)
• Travel insurance → single trip or yearly multi-trip

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